5. The demand curve for product X is given by Or = 300 - 2Px. a. Find the inverse demand curve. Converting the demand curve to the inverse form: Qxd=300-2Px 2P=300-Q P=150-0.5Q the inverse demand function is : P=150-0.5Q b. How much consumer surplus do consumers receive when Px = $45? Consumer surplus =0.5*( Y-axis intercept of the demand curve -P)*Q Y-axis intercept of the demand curve =150 from the inverse demand curve Qx =300-2(45)=210 x210x(150 - 45 = 11,025 The consumer surplus is 11,025 c. How much consumer surplus do consumers receive when Px = $30? P=30 Q=300-2*30=240 CS=0.5*(150-30)*240 CS=14400 The consumer surplus is $14400